Most businesses who utilize the cloud report that they have managed to cut costs while still getting the resources they need to perform to spec. Businesses can use the cloud for processing and storing data, as well as application deployment, making it a very dynamic solution to a business’ needs. However, you cannot make decisions based on cost alone. Here are some other factors to consider.

Explaining Cloud Computing

The benefits of cloud computing are many, with the cost of using it being perhaps the most important one. Software-as-a-Service, or SaaS, is the most common way people use cloud computing with its global market being worth around $230 billion in 2022—a number that is increasing at this moment. It’s estimated that cloud growth sits at around 12-15 percent year to year, showing just how valuable businesses find these tools and possibilities.

To explain SaaS a little more in-depth, consider the following example. You might have purchased a software license to use a particular application in the past, renewing it year to year for the privilege of its continued use. Now, with cloud computing and SaaS, you pay what’s essentially a subscription fee for access to the latest version of the cloud-based software. You don’t have to outright purchase the solution and maintain it yourself—the provider handles that part for you and hosts it themselves on their own internal hardware.

There are other ways to use the cloud too, and the possibilities are limited only by your imagination.

The Benefits of the Cloud Computing Model

There are great benefits to cloud computing, and the cost savings from using it are just the tip of the iceberg. Cloud computing might be more expensive on the surface compared to a single software license, but that cost also includes flexibility that saves you money in the long run. It also saves you from having to manage and maintain the solutions yourself, which can be costly and time-consuming in its own right.

More than 92% of businesses use services that are connected or run through the cloud, establishing it as a crucial part of business operations both now and in the future. Here are some of the other benefits that your company can take advantage of through moving some of its computing tasks into the cloud:

• Potential cost reduction
• Fast scalability
• Promoted collaboration and efficiency
• Provider-side encryption and updates to improve data security

Challenges with Cloud Computing

Now, there are some reasons you should be at least a little wary of the cloud, despite its many benefits. Just like any other technology solution, you need to know what you’re getting into before committing to it. The deployment method itself requires a high-speed Internet connection, and it must be reliable and safe to boot. Most cloud platforms have security features built into them, which is why over 90 percent of businesses have no qualms with using it, but it’s best to be aware of the risk, however small it might be.

Network Synergy can help your business with its cloud computing needs. To learn more, call us today at (203) 261-2201.